Business Strategy Report: Analysis of Marks and Spencer (M&S)

This report analyzes the business strategy of Marks and Spencer (M&S), examining its strategic context, including mission, vision, and core competencies. It reviews factors significant for strategic planning, utilizing models like Ansoff's growth matrix and BCG matrix. The report conducts organizational and environmental audits using the 5C model and Porter's Five Forces, respectively, and includes stakeholder analysis. It then explores alternative strategies and selects an appropriate growth strategy for M&S, concluding with recommendations for future strategic development. The report highlights M&S's market position, competitive landscape, and the impact of globalization on its operations, providing an in-depth analysis of its strengths, weaknesses, opportunities, and threats.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a)Analysing strategic context and terminologies for Marks and Spencer plc.............................1
b) Reviewing the factors significant to develop strategic plans for M&S..................................2
c)Effectiveness of strategic planning techniques involved for the business unit........................4
TASK 2............................................................................................................................................5
a) Organisational audit of Marks and Spencer............................................................................5
b) Environmental audit of M&S.................................................................................................6
c) Stakeholder analysis of M&S ................................................................................................8
TASK 3..........................................................................................................................................10
a) Appropriate alternative strategies for M&S..........................................................................10
b) Choosing appropriate growth strategy for M&S..................................................................11
TASK 4..........................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalisation has developed high intensity on the growth aspects of a business unit. The
present competitive era has affected the operational efficiency of the companies widely.
Gossamer Wings Investment Agency is analysing the performance of the companies in UK to
seek potential business unit for investment. The research will evaluate the potential of the
business unit in the present market situation and analyse the effective measures the business has
implemented in order to develop high growth aspects in the economy. GWIA analysed that the
impact of organizational growth has a direct impact on the investor's development. Hence, an in-
depth analysis of the present business performance and future strategic growth will be analysed
to determine the strategic business position of the business. The impact of effective planning and
development helps a company in creating a competitive edge in the market.
TASK 1
a)Analysing strategic context and terminologies for Marks and Spencer plc
Strategy helps in creating a winning edge for the companies in the market. Strategic
planning process is significant for analysing the future development aspects of the company
while enhancing the present business decisions. In order to evaluate the strategic business
position of Marks and Spencer in the present market situation, detailed information regarding
strategic business context ill be analysed.
Company profile
Marks and Spencer is a globally established retailer which has successfully established its
business operations in more than 34 countries around the world. The organization has developed
a high street brand image in fashion retailing. The diversification of the business in food segment
has helped in attaining successful business growth in the market. The company has been
operating in the market from 132 years and at present has employed more that 83000 employees
(Campbell and Rahman, 2010). The premium brand image and strategic business decisions has
helped the company in training high revenue in this competitive market.
Mission and vision statements:
Mission and vision statements of the business are crucial instruments which helps in
defining the strategic plan for business operations. Vision statement of M&S is to develop a
standard against which others are measured. The bold and strong vision statement of the business
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clearly reflects that the business focuses on creating an edge in the market by producing goods
and services above the market standards (Carbone and Stoddard, 2011). The mission statement
of the business entails that the company aspires to develop aspirational quality which is
accessible to all. This effectively defines that the focus of the business is to produce quality
products which considering the needs of the consumers.
Goals and objectives
These aspects of the business focuses on analysing the planning aspects of the company
which develops a foundation for future business development. The current goals and objectives
of the business to develop a premium brand image by developing prominent digital market
position in the market. The company is currently focusing in enhancing its market share widely
in the global economy.
Core competencies
The core competencies of the business reveals the business strength of the company in
the highly competitive market. The core competency of M&S is quality of products and services
offered to the consumers by developing high value preposition in the market. This has helped the
business unit in developing high trust and loyalty for the brand globally (Adner, R. and
Levinthal, 2014).
b) Reviewing the factors significant to develop strategic plans for M&S
Strategic planning is the process of enhancing decision making power of the business by
efficiently determining the business strategy which helps in enhancing the mechanism of
delivering high business results in the economy. In order to evaluate the strategic planning
aspects of M&S application of models such as Ansoff's growth matrix and BCG matrix will be
applied in the study.
Ansoff's growth matrix
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This business model helps the company in establishing the business growth and
development aspects for the company. Every quadrant of the model represents individual growth
strategy for the company. Analysis of the same will help the business in analysing the strategic
position and planning aspects for the business. Market penetration: This strategy focuses on determining the growth opportunities for
products and services in the present market. M&S has adopted effective marketing mix
to enhance market share in the UK market (lander, 2014). Strong brand equity and well
defined promotional measures provide favourable results for the business. Product development: The company has adopted well developed measure for product
growth and development in the market. The R&D segment focuses on analysing
consumer needs and developing products and services accordingly. Market development: M&S is widely focusing on international sales. The company has
established its business operations in more than 34 countries and presently focusing on
developing effective strategies to carry out the same (Lindell and Karagozoglu, 2011).
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Illustration 1: Ansoff's growth matrix
(Source: Basili and et.al., 2013)

 Diversification: In order to enhance growth and market share in the economy, M&S has
adopted a risky measure of diversification whereby the business established its food retail
segment to enhance its sales in the competitive economy.
BCG matrix for M&S
This model represents the growth strategies for the business by analysing the crucial
aspects of market growth and market share for the business. The four quadrants represent
different aspects of business development for the company. The business operations of M&S
represents that the company has attained high growth aspects in the market however the market
share of the business is low (Haley, Haley and Tan, 2011). This leaves a vast opportunity for the
company to enhance and develop its business operations to attain vast market potential. The
company has established a renowned brand image in the economy however the prospects of
market growth for the business is still quite high.
c)Effectiveness of strategic planning techniques involved for the business unit
The strategic planning of the business demands application of an integrated approach to
analyse the business development and growth aspects in the market. The initial audit of the
business reveals that M&S has development a significant market position in the economy and the
growth and development aspects of the business is high. The business operations of the company
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Illustration 2: BCG Matrix
(Source:Figge and et. al., 2012)

has helped it in creating a well recognised brand identity in the market. Moreover, the limited
market share in the economy reflects that the business has effective growth and development
opportunities. The present market trends reveals that consumers seek quality over cost and value
over benefits. The internal business assessment effectively reveals that the core focus of the
business is to create a well developed growth in the market and create a significant brand identity
in the economy (Porter, 2008). Moreover, analysis of the models applied in the business reveals
that the company has established a significant impact on the retail market and the development
aspects of the business in the industry is high.
Premium brand image and quality of products are the assets of the company. In addition,
the strategic plan of the business to establish effective digital brand recognition will help the
business in attaining high growth prospect. Hence, GWIA must buy large equity stake in the
company as the growth opportunities of the business is high and significant.
TASK 2
a) Organisational audit of Marks and Spencer
The organisational audit of the company helps in attaining a clear and well developed
analysis of the growth and development aspects for the company and its strategic market position
in the economy as well. The organisational audit for M&S will be carried out by applying the 5C
model for the company. It will help in defining a clear organisational position of the business. Company: M&S has been successfully operating its business operations in the
competitive market from 132 years. This has helped the business in attaining effective
brand recognition and consumer base. High quality aspects and well defined business
strategies are the core competencies of the company. The company has established a high
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Illustration 3: 5 C Situation analysis
(Source: Wankel, 2010)

street brand image. Its has established 798 stores in UK while 455 stores internationally
(Vuori and Okkonen, 2012). Continuous development strategies of the business are
highly effective for ensuring effective market position in the competitive economy. Competitors: The retail industry of UK is high competitive and dynamic. The level of
competition for M&S is high. The company has attaining 43.6% of market share in the
economy while companies such as Debenhams, Zara, Next plc, Burton, Primark etc pose
a close competition to the business. However, the competitive position of the business in
food segment is not well developed. Customers: The consumer base of M&S is vital asset of the business. The business policy
of the company has adopted integrated approach to determine the needs and demands of
the buyers and produce products accordingly. Close consumer engagement and integrated
business policies are the assets of the company which has helped business in attaining an
edge in the economy (Kotler, 2011). Collaborators: The business collaboration is well defined for the business as it has
created an effective market position in the economy. The business unit is associated with
established brands such as Kellogg's etc this has helped the company in attaining a high
street brand image in the economy.
 Climate: The business environment of M&S is favourable for growth and development. It
closely analyses the market components such as government policies and regulations and
abide to the same. The economic aspects help the business in analysing the international
growth measures. The internal business environment is positive. Moreover, the measures
for environmental growth and development has helped the business in developing a
unique brand identity in the market (Adeyoyin, 2012).
b) Environmental audit of M&S
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The competitive analysis for M&S has helped the business unit in creating a wide growth
aspects in the economy. In order to analyse the effective market position of the business, porter 5
force model will be applied.
MARKET FORCES IMPACT ANALYSIS
Threat of new entry Low M&S has attained high brand identity in the
market which has helped the company in
developing high level of competition. Hence,
attaining the set position is difficult for new
entrants to attain.
Threat of substitution Moderate Companies such as Zara, Debenhams, Next plc
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Illustration 4: Porter 5 force model
(Source: Stonehouse and et.al., 2009)

etc are positing high competition for the
economy. The minor competitive and
difference may lead the consumers to shift to
the competitive brand however the value
preposition of M&S has helped the business in
attaining effective brand loyalty (Teece, 2010).
Buyer power High Availability of high substitutes may create a
significant impact on consumer choices and
demands. M&S thus keep itself updated with
the latest market trends and demands.
Supplier's power Low The production of goods and services in the
market demands no unique raw material.
Hence, company easily shift to suppliers
offering low cost material in the economy.
Industrial rivalry High The industrial rivalry is fashion retail market is
significantly high. The technological
development and increasing trend of online
fashion retailing has posed significant threat to
the industry (Verbeke, 2013).
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c) Stakeholder analysis of M&S
Illustration 5: Stakeholder analysis
(Source: Business strategy, 2014.)
Stakeholders are the crucial resources of the business. They are the people who are
directly affected by the decisions of the company. Stakeholders play a significant role for the
business unit. The strategies adopted by the business unit to analysing and managing the
stakeholders position in the market. Monitor: Competitors of the company are the stakeholders who have low interest and
power in the business decisions of M&S thus company monitor the competitor closely to
make its business decisions. Keep informed: Suppliers of M&S has significant interest in business growth but has low
power in the business hence the company has adopted the measures whereby they keep
them informed to attain a supportive measure for business development (Business
strategy, 2014.).
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 Manage closely: Employees and investors of the business are the stakeholders who has
wide interest and power in the business thus the business adopt effective strategies for
closely managing them and involving them in the business decisions. Strategies such as
effective communication, training aspects and indulging in business decisions are the
measures adopted by the business unit (Adeyoyin, 2012).
 Keep satisfied: The government and regulatory bodies are the stakeholders who have
high power but low interest in the business operations. Thus, company focuses on
adopting strategies such as building government partnership and managing transparency
of data in the economy to manage effective growth aspects for the business.
TASK 3
a) Appropriate alternative strategies for M&S
The above analysis of the company clearly helps in determining that the growth and
development aspects of M&S is significant and the company can adopt effective measures to
develop an effective position for business growth and development. The alternative strategies
available for the business unit are as follows: Market entry: This strategy focuses on creating a significant impact on the business
growth and development in the economy. The Company may adopt effective and well
defined measures to enter new market and establish the business development aspects
thereby (Porter, 2008). This will help the company in enhancing its market share and
create a wide growth and development aspects in the economy. Substantive growth strategy: This strategy of the business unit focuses on business
development in the present market to create a competitive position n the economy. The
strategy focuses on developing measures to reduce market competition and create a wide
impact on growth aspects of the business. M&S may adopt strategies as merger or
acquisition to develop an effective market position in the market. This will help the
business unit in creating an effective market position in the economy. The stated strategy
will help the company in creating a competitive edge in the market.
 Retrenchment: This business strategy focuses on unique step of the company where the
business unit creates an effective measure to minimize its business activities in the
market. The sick business unit is treated or shut down in order to maintain profitability.
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Turnaround, divestment and liquidation are the three types of measures or tools that can
be used in retrenchment. M&S is not effective for the stated strategy as it will create an
insignificant impact on business growth and development (Figge and et. al., 2012).
b) Choosing appropriate growth strategy for M&S
M&S has developed an effective and well developed market position in the economy.
The business growth and development aspects for the company has created a significant impact
on the business growth and development. The overall analysis of the company has helped in
stating that the market share of M&S has wide prospects of growth. The company current
operational measures have developed a significant aspect on business growth. Market entry
strategy will help the business in enhance its business prospects in untapped markets which will
help result in sales maximization. Moreover, business policies and well established brand image
will help the business in creating an effective brand recognition in the market. Moreover, the
stated strategy will help the company in enhancing the business reach to the new market range
thus the economic development of the business will be high and effective.
TASK 4
Covered in PPT
CONCLUSION
Strategic business operations helps the company n attaining effective and well developed
growth strategy in the market. The overall analysis of the research helped in analysing that the
growth and development aspects of the business is high in the market. The company has
prospects of growth and development in the economy. Investing in the company will be
favourable for the business which will help the business in attaining effective and valid business
results.
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REFERENCES
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measurement. pp.131-.6224.
Campbell, D. and Rahman, M. R. A., 2010. A longitudinal examination of intellectual capital
reporting in Marks & Spencer annual reports, 1978–2008. The British Accounting
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Carbone, G. and Stoddard, D., 2011.Open source enterprise solutions: developing an e-business
strategy. John Wiley & Sons, Inc.
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Teece, D., 2010. Business models, business strategy and innovation. Long range planning. 43(2).
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Verbeke, A., 2013. International business strategy. Cambridge University Press.
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Vuori, V. and Okkonen, J., 2012. Knowledge sharing motivational factors of using an intra‐
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Online
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[Assessed on 7th June 2016].
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